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GM extends vehicle production cuts into mid-March due to global chip shortage

DETROIT — General Motors said on Tuesday it was extending production cuts at three North American plants until at least mid-March due to the global semiconductor chip shortage, while vehicles at two other factories would only be partially built. GM, whose shares dipped 1% after the announcement, did not disclose the impact volumes or say which supplier and vehicle parts were affected by the chip shortage. But it said it would focus on keeping production running at plants building its highest-profit vehicles, full-size pickup trucks and SUVs. GM said it intended to make up as much lost production as possible once the shortage chip eased. "Semiconductor supply remains an issue that is facing the entire industry. GM's plan is to leverage every available semiconductor to build and ship our most popular and in-demand products," GM spokesman David Barnas said. GM said it was extending downtime at its U.S. plant in Fairfax, Kansas, its Canadian factory in Ingersoll, Ontario, and its Mexican facility in San Luis Petosi until mid-March when it would reassess the situation, he said. In addition, GM would build but leave incomplete for final assembly vehicles at Wentzville, Missouri, and its Mexican plant at Ramos Arizpe. GM vehicles affected by the idled plants include the Chevrolet Malibu sedan, Cadillac XT4 SUV, Chevy Equinox, and GMC Terrain SUVs. Vehicles to be left incomplete for now included the Chevy Colorado, GMC Canyon pickups and Chevy Blazer SUV. This week, GM had said it was idling the three factories where it has now extended downtime and said it would halve production at a plant in South Korea. The chip shortage has affected many automakers, including Toyota, Volkswagen, Stellantis, Ford, Renault, Subaru, Nissan, Honda and Mazda. Asian chipmakers are rushing to boost production but say the supply gap will take many months to plug. German chipmaker Infineon said the shortage would get worse in the near term. The chip shortage is expected to cut global output in the first quarter by more than 670,000 vehicles and last into the third quarter, IHS Markit said. AutoForecast Solutions estimated total lost production this year could reach 1 million vehicles. Honda and Nissan said on Tuesday they would sell 250,000 fewer cars in total this financial year due.

Junkyard Gem: 1987 Cadillac Cimarron

The General's Cadillac Division hit its all-time sales record during the 1973 model year, with 304,839 cars sold. Then the OPEC oil embargo in the fall of that year caused oil prices to triple, while simultaneously accelerating several negative trends in the American economy. In the aftermath, sales of imported luxury cars surged, the President resigned, the communists conquered South Vietnam, and Cadillac introduced a compact car based on the proletariat Chevrolet Nova. Sales of those Sevilles — which cost better than triple the price of their Nova siblings — proved strong, and so it seemed to make sense to create a Cadillac-ized version of the Nova's replacement: the front-wheel-drive Chevrolet Cavalier, which debuted for the 1982 model year. Thus was the Cadillac Cimarron born, and that's what we've got for today's Junkyard Gem. The Cimarron stayed in production for the 1982 through 1988 model years, but sales were strongest for the first few years and so the 1982-83 cars make up the bulk of my Cimarron junkyard finds. This very clean '87 in a Denver-area yard is a rare late-production car. Although the Cimarron was by far the swankiest GM J-Body ever made, its Cavalier ancestry was unmistakable. While the Nova-based Seville caused some grumbling over the cheapening of the Cadillac brand, the Cimarron inspired widespread anger and loathing among those who love cars. Even with a leather interior and nice audio system, the Cimarron still caused pain to its owners who saw cheapo Cavaliers (and Pontiac J2000s and Olds Firenzas) looking nearly identical at a glance yet costing far less. In 1987, the list price on a new Cimarron started at $15,032 (about $35,550 in 2021 dollars). The cheapest Cavalier listed at $7,255 that year, though the loaded Cavalier RS sedan with V6 engine started at $9,159. For 1982 through 1986, the base powertrain in the Cimarron consisted of a 1.8-liter or 2.0-liter four-cylinder — yes, the same double-digit-horsepower engines that went into Cavaliers — paired with a four- or five-speed manual transmission. The 2.8-liter V6, rated at 125 horses, was an option in those cars and became standard equipment in the 1987 and 1988 Cimarrons.

Why an independent rear suspension for GM's new, full-sized SUVs wasn't easy

A Motor Trend report last month laid out how Cadillac's 4.2-lier twin-turbo Blackwing V8 could be an orphan due to cost concerns in the GM empire. Last-minute chassis changes to Cadillac's new sedans and XT6 crossover led to engine bays that couldn't fit the Blackwing. On the SUV side, according to the report, the new independent rear suspension for big people haulers cost so much to implement that GM ruled out reworking the Escalade to accept the Blackwing. At least one commenter rightly asked how could a suspension swallow that much money. A new piece in Motor Trend has the answer. The excellent Alissa Priddle spoke to Tim Herrick, GM's executive chief engineer for full-size trucks, about why the clean-sheet IRS cost "multimillions of dollars."  First, GM would need to build a new body shop at the Arlington, Texas plant that assembles the automaker's big SUVs to stamp the numerous wholly new parts and panels accommodating an IRS. Then GM would need to design and pay for a new assembly process. On top of those up-front costs, there was the incremental cost of the four-link IRS components being more expensive than those in the trucks' former leaf-sprung solid axles. Herrick endured so many rejections for so long that he remembers the date and time when he got approval for the new unit. He said it came down to a meeting where he told a higher-up, "I'll make you a deal: If we get to the reveal, or if we launch this and you think this was a dumb idea, I'll hand you my badge and let you walk me out." Head to Motor Trend to read the full story. Based on Herrick being on stage to help present the new SUVs to the press, and on our First Ride in the new Chevrolet Tahoe and Suburban at GM's Milford Proving Grounds, it appears this will have a happy ending for all involved. Furthermore, since Herrick worked on the T1 platform that supports the big SUVs as well as the light- and heavy-duty pickups, he understood the demands on the commercial side, too. That could be why when Roadshow asked Tim Asoklis, chief engineer of the Tahoe and Suburban, if the new IRS could endure life in the Chevrolet Silverado and GMC Sierra, Asoklis answered, "Oh, absolutely." Related Video: